i the effect of employee motivation, self-esteem and...
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i
THE EFFECT OF EMPLOYEE MOTIVATION, SELF-ESTEEM AND
CREATIVITY ON SUGGESTION SYSTEMS PRACTICES
IN IRANIAN AUTOMOTIVE INDUSTRY
ALI PAKDEL
A thesis submitted in fulfilment of the
requirements for the award of the degree of
Doctor of Philosophy (Management)
Faculty of Management
Universiti Teknologi Malaysia
AUGUST 2015
iii
DEDICATION
This work is dedicated to my parents Safieh and Ezatollah who provided
unconditional love and taught me how to soar on eagle‟s wings, to my lovely wife,
and dear my son Mahdi Pakdel who have always encouraged me and have taught me
to think big, to never give up, and to believe in myself and dealt with all of my
absence from my family occasions with a smile. My supportive and loving to my
siblings Mohammad Pakdel, Hossein Pakdel, Mohammad Reza Pakdel, Mohsen
Pakdel, Esmat Khorshidi and Fatemeh Khorshidi for their love, support and
encouragement. My supportive and loving to father and mother-in-law, my sister and
brothers-in-law.
iv
ACKNOWLEDGMENT
I would like to thank above all else, Allah Almighty, for blessing me and
truly giving me the faith, courage, inspiration, and steadfastness to continue on this
journey in my life. I realised that He is always with me. I would like to thank my
supervisor, Dr. Shah Rollah Abdul Wahab who have continuously mentored me
throughout my entire Ph.D. program and have shared their experiences, wisdom, and
knowledge as an academicians as well as scholars. Also, I would like to thank my
external examiner, Associate, Prof. Dr. Rusli, and my internal examiner, Dr. Siti
Aisyah to evaluate my thesis. Finally, I would like to thank of the chairmen Prof. Dr.
Rohaizat and assistance Dr. Lily Suriani for participate in this meeting. They shaped
my doctoral experience and provided me with the necessary skills to be successful in
my academic career. Without their unwavering help and guidance, this journey
would not have been possible. I would also like to thank Prof. Dr Khalil Md Nor,
Prof. Dr. Mahdi Alvani, Dr. Mohammad Reza Rabiei Mandjin, Dr. Hassan Givarian,
Dr. Ahmad Bin Jusoh, Dr. Siti Fatimah bt Bahari, Dr. Hanif Haghshenas, Dr. Majid
Tavakoli, Dr. Abbas Alipanah, and Mr, Hassan, Madam Azlina, Madam Zaidah, Ms.
Sedigheh Pakdel, Ms. Akram Mohebi, Madam Vida Tavakoli, Madam Sima Samiei,
Madam Sara Harifi, and Mr. Hamid Namdar for their guidance, support, advice, and
helpful comments. My special thanks to Islamic Azad University of Iran, Broujerd
Branch. I would like to thank my parents, Safieh and Ezzatollah, who have always
encouraged me and have taught me to think big, to never give up, and to believe in
myself. I dedicate this dissertation to them for providing love, understanding, and
encouragement during the pursuit of this degree. To my lovely wife and dear my son
because of here care, concern, and understanding. I am thankful to many other
people who have contributed to my process in completing this thesis.
v
ABSTRACT
The role of suggestion systems is important in promoting innovation and
profitability in organizations. Suggestion systems are administrative tools that
increase participation and offer opportunities to employees and customers to present
their comments. There is lack of empirical studies investigating the effect of
employee motivation and self-esteem on Suggestion Systems Practices (SSP) via
creativity especially in the context of developing countries. The main objective of
this study is to identify the effect of creativity as a mediator on the relationship
between employee motivation and SSP in Iranian's automotive company namely
Saipa Company. The second objective is to identify mediator role of creativity on the
relationship between self-esteem and SSP in Saipa Company. Data were gathered
using questionnaires and the variables being measured were employee motivation,
self-esteem, SSP and creativity. Stratified random sampling technique was used to
ensure that all affected departments provide adequate number of samples to represent
production employees of Saipa Company. A total of 395 employees were selected
from production section as the respondents for this study. The data were analyzed
using the Structural Equation Modelling (SEM). Results of the study revealed that
there is an influence of employee motivation and self-esteem on SSP in Iranian
automotive company. The findings of the study indicated that creativity plays a
significant role as a mediator on the relationship between employee motivation and
SSP. In addition, the study showed that creativity plays a significant role as a
mediator on the relationship between self-esteem and SSP. Finally, the study
provides several theoretical and practical implications for practitioners and policy
makers.
vi
ABSTRAK
Peranan sistem cadangan adalah penting dalam mempromosi inovasi dan
keuntungan dalam organisasi. Sistem cadangan adalah alat pentadbiran yang
meningkatkan penyertaan serta menawarkan peluang kepada pekerja dan pelanggan
untuk memberi komen mereka. Terdapat kurang kajian empirikal yang menyiasat
kesan motivasi pekerja dan keyakinan diri terhadap Amalan Sistem Cadangan (SSP)
melalui kreativiti terutamanya dalam konteks negara membangun. Objektif utama
kajian ini adalah mengenal pasti kesan kreativiti sebagai perantara ke atas hubungan
antara motivasi pekerja dan SSP dalam syarikat automotif Iran bernama Syarikat
Saipa. Objektif kedua adalah mengenal pasti peranan perantara kreativiti ke atas
hubungan antara keyakinan diri dan SSP dalam Syarikat Saipa. Data telah dikumpul
menggunakan soal selidik dan pembolehubah yang diukur ialah motivasi pekerja,
keyakinan diri, SSP dan kreativiti. Teknik persampelan rawak berstrata telah
digunakan bagi memastikan semua jabatan terbabit menyediakan jumlah sampel
yang cukup untuk mewakili pekerja pembuatan Syarikat Saipa. Seramai 395 orang
pekerja telah dipilih dari bahagian pembuatan sebagai responden kajian ini. Data
dianalisis menggunakan Model Persamaan Berstruktur (SEM). Keputusan
menunjukkan terdapat pengaruh motivasi pekerja dan keyakinan diri terhadap SSP
dalam syarikat automotif Iran. Dapatan kajian menunjukkan bahawa kreativiti
memainkan peranan signifikan sebagai perantara ke atas hubungan antara motivasi
pekerja dan SSP. Di samping itu, kajian menunjukkan kreativiti memainkan peranan
yang signifikan sebagai perantara ke atas hubungan antara keyakinan diri dan SSP.
Akhirnya, kajian ini menawarkan beberapa implikasi teoritikal dan praktikal kepada
pengamal dan pembuat polisi.
vii
TABLE OF CONTENTS
CHAPTER TITLE PAGE
DECLARE ii
DEDICATION iii
ACKNOWLEDGMENT iv
ABSTRACT v
ABSTRAK vi
TABLE OF CONTENTS vii
LIST OF TABLES xvii
LIST OF FIGURES xxi
LIST OF ABBREVIATIONS xxiv
LIST OF SYMBOLS xxvi
LIST OF APPENDICES xxvii
1 INTRODUCTION 1
1.1 Chapter Overview 1
1.2 Background of the Research 1
1.3 The Problem Statement 4
1.4 Research Questions 7
1.5 Purpose of Study 7
1.6 Research Objectives 7
viii
1.9.3 Self-esteem 12
1.9.4 Creativity 13
1.10 Operational Definition 14
1.10.1 Suggestion Systems Practices (SSP) 14
1.10.2 Employee Motivation 14
1.10.3 Self-esteem 15
1.10.4 Creativity 15
1.11 Outline of the Thesis 16
2 LITERATURE REVIEW 17
2.1 Chapter Overview 17
2.2 Development of Suggestion Systems Practices 17
2.3 The Theory Z 21
2.4 Suggestion Systems Practices (SSP)
Dimensions 24
2.4.1 Organizational Trust 25
2.4.2 Rewards 26
2.3.3 2.4.3 Perceived Behavioral Control (PBC) 27
2.4.4 Supervisory1Management1Support
a(SMS) 28
2.5 Overview of Employee Motivation 29
1.7 Scope of the Study 8
1.8 Significance of the Study 9
1.9 Conceptual Definition of Key Terms 11
1.9.1 Suggestion Systems Practices (SSP) 11
1.9.2 Employee Motivation 12
ix
2.6 Self-Determination Theory (SDT) 31
2.7 Employee Motivation Dimensions 32
2.7.1 Intrinsic Motivation 33
2.7.2 Extrinsic Motivation 34
2.8 Overview of Self-esteem 36
2.9 Theory of Planned Behavior (TPB) 38
2.10 Self-esteem Dimensions 40
2.10.1 Competence 41
2.10.2 Significance 42
2.10.3 Power 43
2.10.4 Virtue 43
2.11 Overview of Creativity 45
2.12 Social Cognitive Theory (SCT) 47
2.13 Creativity Dimensions 49
2.13.1 Integration of Innovation 50
2.13.2 Creative Behavior 50
2.13.3 Organizational Creativity 51
2.14 Conceptual Framework 52
2.14.1 Independent Variables 53
2.14.2 Mediating Variable 53
2.14.3 Dependent Variable 54
2.15 Development of Hypothesis 55
2.15.1 The Influence of Employee
Motivation on Suggestion Systems
Practices (SSP) 55
x
2.15.2 The Influence of Self-esteem on
Suggestion Systems Practices (SSP) 57
2.15.3 The Effect of Creativity as Mediator
on the Relationship between
Employee Motivation and
Suggestion Systems Practices (SSP) 59
2.15.4 The Effect of Creativity as Mediator
on the Relationship between Self-
esteem and Suggestion Systems
Practices (SSP) 60
2.16 Summary 62
3 RESEARCH METHODOLOGY 64
3.1 Chapter Overview 64
3.2 Research Process 64
3.3 Research Design 66
3.4 Iranian Automotive Industry and Saipa
Production System 68
3.5 Population and Sample 69
3.6 Research Instrument 74
3.6.1 Measures: Scales and their
Psychometric Properties 77
3.6.1.1 Measures of Suggestion
Systems Practices (SSP) 77
3.6.1.2 Measures of Employee
Motivation 78
3.6.1.3 Measures of Self-esteem 79
3.6.1.4 Measures of Creativity 80
3.7 Pilot Study 81
xi
3.7.188 Validity8of8the8Instrument 82
3.7.2 Reliability of the Instrument 83
3.8 Testing on the Assumption of Multivariate
Analysis 84
3.8.1 Testing on the Assumption of
Normality 84
3.8.2 Testing on the Assumption of
Linearity and Homoscedasticity 88
3.8.3 Testing on the Assumption of
Multicollinearity and Skewness 91
3.9 Data Analaysis 94
3.9.1 Descriptive Statistics 94
3.9.2 Path Analysis 95
3.9.2.1 Structural Equation
Modeling (SEM) 96
3.9.2.2 Fit Indices 99
3.9.2.3 Full and Partial Mediation 99
3.10 Summary 100
4 ANALYSES AND FINDINGS 104
4.1 Introduction 104
4.2 Return and Usable Rate 105
4.3 Descriptive Analysis 105
4.3.1 Findings on the Questionnaire 105
4.3.2 Respondents‟ Demographic 106
4.3.3 Respondent‟s Overview on the
Variables 108
xii
4.3.3.1 Suggestion Systems
Practices (SSP) 108
4.3.3.2 Employee Motivation 110
4.3.3.3 Self-esteem 111
4.3.3.4 Creativity 113
4.4. Measurement Development 115
4.4.1 Confirmatory Factor Analysis (CFA) 115
4.4.2 Initial Measurement Model Fit and
Modification 116
4.4.2.1 Initial Findings on Items
of Suggestion1Systems
Practices (SSP) 117
4.4.2.2 Initial Findings on Items
of Employee Motivation 120
4.4.2.3 Initial Findings on Items
of Self-esteem 123
4.4.2.4 Initial Findings on Items
of Creativity 125
4.4.3 Overall Measurement Model Fit 132
4.4.4 Bivariate Correlations between
Latent Variables 134
4.4.5 Assessment of Reliability
and Validity 137
4.4.61g Overall Results of Measurement
Development 138
4.5 Findings on Hypotheses Testing and Model
Testing 140
xiii
4.5.1 Findings on Research Objective 1: To
Examine the Influence of Employee
Motivation on SSP in Iranian
Automotive Company 140
4.5.2lll Findings on Research Objective 2: To
Examine an Influence of Self-esteem
on SSP in Iranian Automotive
Company 143
4.5.3ll Findings on Research Objective 3: To
Determine the Role of Creativity as
Mediator on the Relationship between
Employee Motivation and SSP in
Iranian Automotive Company 146
4.5.3.1 Findings on Research
Objective 3: To Determine the
Role of Integration of
Innovation as Mediator on the
Relationship between
Employee Motivation and SSP
in Iranian Automotive
Company 149
4.5.3.2 Findings on Research
Objective 3: To Determine
the Role of Creative
Behaviour as Mediator on the
Relationship1between
Employee Motivation and
SSP in1Iranian1Automotive
Company 151
xiv
4.5.3.3 Findings on Research
Objective 3: To Determine
the Role of Organizational
Creativity as Mediator on the
Relationship between
Employee Motivation and
SSP in Iranian Automotive
Company 153
4.5.4 Findings on Research Objective 4: To
Determine the Role of Creativity as
Mediator on the Relationship between
Self-esteem and SSP in Iranian
Automotive Company 155
4.5.4.1 Findings on Research
Objective 4: To Determine
the Role of Integration of
Innovation as Mediator on
the Relationship between
Self-esteem and SSP in
Iranian Automotive
Company 158
4.5.4.2 Findings on Research
Objective 4: To Determine
the Role of Creative
Behaviour as Mediator on the
Relationship between Self-
esteem and SSP in Iranian
Automotive Company 160
xv
4.5.4.3 Findings on Research
Objective 4: To Determine
the Role of Organizational
Creativity as Mediator on the
Relationship between Self-
esteem and SSP
in1Iranian1Automotive
Company 162
4.5.5 Model Comparison and Summary of
the Model Fit 164
4.6 Summary of the Results 168
5 DISCUSSION AND CONCLOSION 174
5.1 Introduction 174
5.2 Discussion on the Research Objectives 175
5.2.1 The Influence of Employee
Motivation on Suggestion Systems
Practices (SSP) in Iranian
Automotive Company 175
5.2.2 The Influence of Self-esteem on
Suggestion Systems Practices (SSP)
in Iranian Automotive Company 177
5.2.31 1 The Role of Creativity to
Mediate on the Relationship
between Employee
Motivation and Suggestion
Systems Practices (SSP) 180
5.2.4 1 The Role of Creativity to Mediate on
the Relationship between Self-
esteem and Suggestion Systems
Practices (SSP) 182
xvi
5.3 Theoretical and Practical Contributions 184
5.3.1 Theoretical Contributions 184
5.3.1.1 Research Methodology and
Research Model 186
5.3.2 Practical Contributions 188
5.4 Research Limitation 190
5.5 Areas for Future Research 191
5.6 Conclusion 193
REFERENCES 195
Appendices A-H 231 - 273
xvii
LIST OF TABLES
TABLES NO. TITLE PAGE
2.1 The Assumptions of Theory Z 23
3.1 Research Design 66
3.2 The Study Population and Sample 71
3.3 Components of Research Instrument 76
3.4 Reliability Statistics 84
3.5 Multicollinearity of the Variables 92
3.6 The Central Indices and Distribution Variables 93
3.7 Index Category and the Level of Acceptance for every
Index 98
3.8 A Summary of Objective, Measurement and Data
Analyses 102
4.1 Return and Usable Rate of the Questionnaire 105
4.2 Findings on Respondents‟ Demographic 106
4.3 Findings on Suggestion Systems Practices (SSP) and Its
Dimensions 109
4.4 Findings on Employee Motivation and Its Dimensions 110
4.5 Findings on Self-esteem and Its Dimensions 112
4.6 Findings on Creativity and Its Dimensions 114
4.7 Findings of CFA on Organizational Trust, Rewards, PBC,
and SMS 118
xviii
4.8 Convergent Validity, Discriminant Validity, Composite
Reliability and Cronbach‟s Alpha for Suggestion Systems
Practices (SSP) 120
4.9 Findings of CFA on Intrinsic Motivation and Extrinsic
Motivation 121
4.10 Convergent Validity, Discriminant Validity, Composite
Reliability and Cronbach‟s Alpha for Employee
Motivation 122
4.11 Findings of CFA on Competence, Significance, Power,
and Virtue 123
4.12 Convergent Validity, Discriminant Validity, Composite
Reliability and Cronbach‟s Alpha for Self-esteem 125
4.13 Findings of CFA on Integration of Innovation, Creative
Behaviour, and Organizational Creativity 126
4.14 Convergent Validity, Discriminant Validity, Composite
Reliability and Cronbach‟s Alpha for Creativity 132
4.15 Summary of Overall Measurement Model Fit 133
4.16 Implied Correlations Matrix 135
4.17 Summary of Measurement Models Fit Statistic 139
4.18 The Standardized Regression Weights and its
Significance for Each Path (Employee Motivation and
SSP) 144
4.19 The Standardized Regression Weights and its
Significance for Each Path (Self-esteem and SSP) 145
4.20 Indirect Effect of IV (Employee Motivation) on DV
(SSP) through the Mediator Variable 147
4.21 The Standardized Regression Weights and its
Significance for Each Path (Employee Motivation,
Creativity, and SSP) 148
xix
4.22 The Standardized Regression Weights and its
Significance for Each Path (Employee Motivation,
Integration of Innovation, and SSP) 150
4.23 The Standardized Regression Weights and its
Significance for Each Path (Employee Motivation,
Creative Behaviour, and SSP) 152
4.24 The Standardized Regression Weights and its
Significance for Each Path (Employee Motivation,
Organizational Creativity, and SSP) 154
4.25 Indirect Effect of IV (Self-esteem) on DV (SSP) through
the Mediator Variable 156
4.26 The Standardized Regression Weights and its
Significance for Each Path (Self-esteem, Creativity, and
SSP) 157
4.27 The Standardized Regression Weights and its
Significance for Each Path (Self-esteem, Integration of
Innovation, and SSP) 159
4.28 The Standardized Regression Weights and its
Significance for Each Path (Self-esteem, Creative
Behaviour, and SSP) 161
4.29 The Standardized Regression Weights and its
Significance for Each Path (Self-esteem, Organizational
Creativity, and SSP) 163
4.30 The Standardized Regression Weights and its
Significance for Each Path (Employee Motivation, Self-
esteem, Creativity, and SSP) 165
4.31 Fitting Research Indicators in a Complex Model 168
4.32 Structural Equation Modeling (SEM) Output for
Hypothesized Path Relationship in the Structure Model 170
xx
4.33 Summary of the Objectives, Hypothesis, and the Test
Results 172
5.1 Summary of Research Questions and Findings 184
xxi
LIST OF FIGURES
FIGURES NO. TITLE PAGE
2.1 Taxonomy of Human Motivation 35
2.2 Theory of Planned Behavior 39
2.3 The Social Cognitive Theory 47
2.4 The Conceptual Framework 54
3.1 The Flowchart of the Operational Framework 65
3.2 Sampling Process 70
3.3 Normality of Employee Motivation on Suggestion Systems
Practices (SSP) by using Residual Histogram 85
3.4 Normality of Self-esteem on Suggestion Systems Practices
(SSP) by using Residual Histogram 86
3.5 Normality of Creativity on Suggestion Systems Practices
(SSP) by using Residual Histogram 86
3.6 Normality of Employee Motivation on Suggestion Systems
Practices (SSP) by using Normal Probability Plot
Regression Standardized Residual 87
3.7 Normality of Self-esteem on Suggestion Systems Practices
(SSP) by using Normal Probability Plot Regression
Standardized Residual 87
3.8 Normality of Creativity on Suggestion Systems Practices
(SSP) by using Normal Probability Plot Regression
Standardized Residual 88
xxii
3.9 Linearity of Employee Motivation on Suggestion Systems
Practices (SSP) by using Scatterplots 88
3.10 Linearity of Employee Self-esteem on Suggestion Systems
Practices (SSP) by using Scatterplots 89
3.11 Linearity of Creativity on Suggestion Systems Practices
(SSP) by using Scatterplots 89
3.12 Linearity and Homoscedasticity of Employee Motivation
on Suggestion Systems Practices (SSP) by using Residual
Scatterplot 90
3.13 Linearity and Homoscedasticity of Self-esteem on
Suggestion Systems Practices (SSP) by using Residual
Scatterplot 91
3.14 Linearity and Homoscedasticity of Suggestion Systems
Practice (SSP) on Suggestion Systems Practices (SSP) by
using Residual Scatterplot 91
3.15 Modeling the Mediator in the Structural Model 100
4.1 Hypothesised Overall Mediation Model 141
4.2 Hypothesised Overall Mediation Model and Latent
Construct 142
4.3 The Standardized Regression Weights of the Effect of
Employee Motivation on SSP 144
4.4 The Standardized Regression Weights of the Effect of Self-
esteem on SSP 146
4.5 The Standardized Regression Weights of the Mediating
Effect on the Relationship of Employee Motivation and
SSP 149
4.6 The Latent Construct (Integration of Innovation) Effect on
the Relationship of Employee Motivation and SSP 151
xxiii
4.7 The Latent Construct (Creative Behaviour) Effect on the
Relationship of Employee Motivation and SSP 153
4.8 The Latent Construct (Organizational Creativity) Effect on
the Relationship of Employee Motivation and SSP 155
4.9 The Standardized Regression Weights of the Mediating
Effect on the Relationship of Self-esteem and SSP 158
4.10 The Latent Construct (Integration of Innovation) Effect on
the Relationship of Self-esteem and SSP 160
4.11 The Latent Construct (Creative Behaviour) Effect on the
Relationship of Self-esteem and SSP 162
4.12 The Latent Construct (Organizational Creativity) Effect on
the Relationship of Self-esteem and SSP 164
4.13 The Standardized Regression Weights of the Mediating
Effect on the Relationship of Employee Motivation and
Self-esteem on SSP (Final Structural Model) 166
5.1 Research Model 187
xxiv
LIST OF ABBREVIATIONS
AMOS
- Analysis of Moment Structures
AMPM - Aftermarket Parts Manufacturers
AVE - Average Variances Extracted
CB - Creative Behaviour
CFA - Confirmatory Factor Analaysis
CFI - Comparative Fit Index
CMIN/DF - Chi-square Mean/Degree of Freedom
CR - Critical Ratio
DV - Dependent Variable
EM - Employee Motivation
EXM - Extrinsic Motivation
GDP - Gross Domestic Product
GFI - Goodness-of-Fit Index
IFI - Intcermental Fit Index
IoI - Integration of Innovation
IM - Intrinsic Motivation
IV - Independent Variable
MI - Modification Index
NED - Number of Employee in Department
xxv
OC - Organizational Creativity
OEM - Original Equipment Manufacturing
OT - Organizational Trust
PBC - Percieved Behavioural Control
RMSEA - Root Mean Square Error of Approximation
SE - Standard Errors
SEM - Structural Equation Modeling
SMS - Supervisory Management Support
SPSS - Statistical Package for the Social Sciences
SSP - Suggestion Systems Practices
TLI - Tucker Lewis Index
TPS - Toyota Production System
VIF - Variance Inflation Factor
xxvi
LIST OF SYMBOLS
- Alpha Value
β - Beta Coefficient
X - Independent Variable
M - Mediator Variable
Y - Dependent Variable
- Standard Error of Estimates
∑ - Sum of the Score
N - The Number of Scores
N - Population Size
S - Sample Size
E - Estimate
- Standard Deviation
χ2 - Chi-square Mean
P - Population proportion (assumed to be 0.50)
d - Degree of accuracy expressed as proportion (0.05)
P - P-value
H0 - Normal Data
Ha - Non-normal Data
xxvii
LIST OF APPENDICES
APPENDIX TITLE PAGE
A Proposed Research Questionnaire 231
B Determining Sample Size from a Given Population 249
C Item-Total Statistics 250
D Itemized Analysis of the Questionnaire 254
E Measurement Model: Latent Variables Tested 266
F Structural Model Results: Observe Variables Tested 269
G Outline of Selected Empirical Studies on Suggestion
Systems 270
H List of Publication 273
1
1 CHAPTER 1
2 INTRODUCTION
1.1 Chapter Overview
This chapter presents an outline of the content of the thesis. Background of
the research, the problem statement, research questions, research aim, research
objectives, and scope of the study offer an overview of this chapter. Finally, this
chapter discusses about significance of the study, conceptual definition of terms, and
operational definition.
1.2 Background of the Research
Suggestion systems are administrative tools that increase participation and
offer opportunities to employees and customers, to present their comments. On the
other hand, suggestion systems create opportunities for organizations to use their
mental resources (Owlia and Amin, 2000). However, in a civilized society, ideas
cannot be forced out of people; people themselves need to volunteer (Pluskowski,
2002). Suggestion systems are capable of being all inclusive by focusing on
capturing ideas from all workers, not just ideas from those who have been identified
as smart workers (Owlia and Amin, 2000). It is also regarded as the basic instrument
2
for being creative. Coupled with the implementation of suggestion systems,
management should motivate workers to be creative and involved in the process
(Sheikh Mohamadi and Zavare, 2005).
Systems of acceptance and review of suggestions are among the effective and
powerful tools for implementing the objectives and organizational strategy based on
the improvement of communications between management, employees, people and
clients (Toosi, 2002). In the framework of suggestion systems, that is the first stage
of establishing the suggestion systems, it attempts to prepare the intra-organizational
communications by the development of employees. By creating such an
environment, it is necessary to learn and continuously develop as well present and
activate cooperation with all employees (Abooie et al., 2010).
The role of suggestion systems is important in promoting innovation and
profitability in organizations (Fairbank et al., 2003). Van Dijk and Van den (2002)
estimated an average benefit of $13 for every $1 spent on systems administration
(including rewards), or an estimated average net savings of over $7000 from every
idea. Despite this, not many employees work in a participative atmosphere (Allnoch,
1997). Therefore, there is still a need to investigate factors affecting suggestion
systems. Suggestion systems provide a setting where all employees in an
organization participate in decision-making and help one another in resolving issues.
All participation in this system is voluntary (Sheikh Mohamadi and Zavare, 2005).
When suggestion systems develop in a creative and initial way, it is recognized as an
innovative approach. Suggestions in creative behavioral view are related to being
creative in job, thought and having a creative character (Ford, 1996).
Employee motivation is important for any organization to be successful.
Organizations which do not motivate their employees face the challenge of personnel
dissatisfaction. This assertion is consistent with the studies of Shalley and Gilson,
(2004), Huhtala and Parzetall (2007). However, it is surprising there is not much
research about employee's motivation in suggestion systems (Van Dijk and Van den,
2002; Barrett, 2006; Buech et al., 2010). Some organizations have revealed the
connection between suggestion systems and low performance advancement with a
view to understanding the importance of suggestion systems (Alan and Dean, 2009).
3
When management properly understands suggestion systems, they would know how
to motivate employees differently.
Suggestion systems should receive all comments that cannot be
operationalized should be revised by the organization. Offering incentive in any way
increases confidence in employees resulting in improved self-esteem (Bandura,
1986; Ford, 1996). Based on empirical evidence, self-esteem has the effect of
stimulating employees to fulfill a task, to learn and support innovation (e.g. Liao and
Tai, 2006; Chiu et al., 2007; George and Zhou, 2007). Employees with high esteem
are highly alert and are less disposed to react poorly in the face of barriers or
obstacles (Gardner and Pierce, 1998; Locke et al., 1996). Most studies (e.g.
Brockner, 1988; Gebauer et al., 2008; Barry et al., 2007; Denissen et al., 2008)
indicate a positive relationship between self-esteem and suggestion systems
performance. However, there is limited evidence focussing on Iranian automotive
industry in relation to suggestion systems (Toosi, 2002), or the need for suggestion
systems to be proactively developed by Iranian automotive industry in doing system.
The literature indicates that suggestion systems difficulties are due to a lack of belief
of managers and employees to this system and severe constraints or limitations on
resources (Toosi, 2002).
The need to develop suggestion systems for Iranian automotive industry has
been widely acknowledged and suggestion systems are a useful way for
organizations and company managers/employees to expand suggestion systems
advantages and knowledge (Toosi, 2002). The study attempts to examine the
relationship between employee motivation, self-esteem, creativity and suggestion
systems practices (SSP) in Iranian automotive company. More specifically the study
attempts to investigate the effect of employee motivation dimensions on SSP of
Iranian automotive company. Moreover, the study attempts to examine empirically
the intensity of self-esteem dimensions that significantly influence the SSP of Iranian
automotive company. Finally, the study attempts to examine the relationship between
employee motivation, self-esteem and SSP in Iranian automotive company in regards
with the role of creativity as mediator on this relationship.
4
1.3 The Problem Statement
Nowadays, organizations are more successful because they make equivalence
between justice motivation and inherent credit for increasing creativity to achieve
better efficiency. Suggestion systems use customer comments to create benefits and
employees feel that their ideas are being recognized (Coleman, 2007). Gupta (2008)
believes that when managers listen to their employees, it could also help them make
better decisions. Suggestion systems are still remaining a business challenge for
managers and researchers and are not always as successful as managers intend them
to be (Kordi et al., 2012).
Initially, failed suggestion systems could result in (a) missing business
opportunities, (b) duplication of efforts, (c) bad product and low customer service
quality, (d) low quality, (e) low performance and low productivity, (f) improper
behavior or low self-confidence of employees, and (g) fewer new ideas, and low
motivation. If suggestion systems are not employed efficiently in companies, which
boost performance, productivity and quality of products and services, chances are
that the companies may face 30% loss (Girardelli, 2005; Lavinia and Klein, 2009).
Nowadays, suggestion systems are a philosophy rather than a set of specific activities
and refer to an important factor in organizational improvement (Wilson et al., 2010).
It can be claimed that the essential factor in suggestion systems is motivation
which resulted in better success for supporting the suggestions. Employee motivation
is an important factor that influences suggestion systems practices (SSP) in two
dimensions (intrinsic motivation and extrinsic motivation). However, some
researchers found mixed results that indicate employee motivation may have a major
impact on large firms (Terez, 2001; Grant, 2008). In this study, the first research
question is about the influence of employee‟s motivation with some dimensions,
such as intrinsic motivation and extrinsic motivation on SSP in Iranian automotive
company. Moreover, the second research question is about the influence of self-
esteem with some dimensions, such as competence, significance, power and virtue
on SSP in an Iranian automotive company. However, the lack of influence of
employee motivation and self-esteem on SSP in the Iranian automotive industry is
5
widely acknowledged (Toosi, 2002; Abooie et al., 2010; Abadi et al., 2011). Until
now, researchers have presented little empirical support for this proposition (Toosi,
2002).
According to previous studies (e.g. Christiaan and Van, 2002; Fairbank et al.,
2003; Fairbank and Williams, 2001; Buech et al., 2010; Lavinia and Klein, 2009;
Mason, 2010; Sproat, 2010; Abooie et al., 2010), lack of the role of creativity on SSP
causes less employee cooperation on suggestion systems, less grouping among
employees, low spirit of partnership in order to create dynamic and developing
processes, and also, low product quality and service (Fairbank et al., 2003;
Christiaan and Van, 2002). The third and fourth research questions of this study have
investigated how creativity plays a role in the relationship between independent
variables (employee motivation and self-esteem) and SSP in an Iranian automotive
company. In the Iranian automotive industry, the suggestion systems may also be
considered as an effective system in production.
Most previous studies have revealed that the lack of creativity in SSP and
necessity of creativity for employees is one of the fundamental bases for
internalizing the suggestion systems in Iranian automotive productions (Toosi, 2002;
Abooie et al., 2010; Abadi et al., 2011). Lack of promoting the level of quantitative
suggestions to qualitative suggestions on one side and lack of movement of
individual suggestions to group level on the other side have been noticed as problems
during the recent years (Fairbank et al., 2003; Christiaan and Van, 2002). There are
some researchers (e.g. Abooie et al., 2010; Abadi et al., 2011; Kordi et al., 2012) that
have focused on suggestion systems in Iranian industries. There is an opportunity for
researchers to research and fill this gap in the automotive industry domain. However,
the literature shows a lack of focus on employee motivation and self-esteem via
creativity on SSP and this is shown to be a knowledge gap in the literature of
suggestion systems (Abadi et al., 2011; Vijayarani and Radjamanogary, 2014).
The study applies creativity as a mediator variable. Therefore, the results of
the study may clarify the amount of change in the causal relationship between
motivation and self-esteem on SSP. In this regard, few case studies have been
conducted to reflect the influence of employee motivation and self-esteem in the
6
increase of SSP through the process of creativity (e.g. Christiaan and Van, 2002;
Fairbank et al., 2003; Buech et al., 2010). The findings of these researchers, Fairbank
and Williams (2001) and Fairbank et al. (2003), showed that the expectancy theory
increases the motivation of employees to participate in suggestion systems.
Moreover, to the researcher‟s knowledge, there is a lack of empirical studies that have
investigated the effect of employee motivation and self-esteem on suggestion systems practices
(SSP) via creativity, especially in the context of developing countries.
A review of literature revealed that empirical researches (Toosi, 2002;
Abooie et al., 2010; Abadi et al., 2011) that focus on the relationship between
employee motivation, self-esteem, creativity, and suggestion systems are very scarce,
especially in the context of Iranian automotive companies. Thus, there is a clear need
for an empirical research to explore those constructs and mediator variable
influencing the relationship between them. Since 2000, suggestion system was
established in Saipa Company with the aim of providing the necessary condition to
perform advanced management systems via accepting note system and common
participation of the personnel in planning. The creation of suggestion investigation
systems approves and performs the suggestions in the direction of system goals,
improves and promotes quality in the systems, methods and regulations and
progression of human resources.
To bridge this gap, this study tends to inspect the role of creativity as
mediator on the relationship between employee motivation and self-esteem on SSP in
Saipa Company. Previous studies have investigated the role of some factors (e.g.
motivation, satisfaction, motivation creativity and enhancing innovation, generating
ideas) on suggestion systems separately (e.g. Buech et al., 2010; Lavinia and Klein,
2009; Mason, 2010; Sproat, 2010; Abooie et al., 2010). So, this study has focused on
the role of creativity as the mediator on the relationship between independent
variables (employee motivation and self-esteem) and SSP.
7
1.4 Research Questions
1. Is there an influence of employee motivation on SSP in Iranian automotive
company?
2. Is there an influence of self-esteem on SSP in Iranian automotive company?
3. How creativity play a role to mediate in the relationship between employee
motivation and SSP in Iranian automotive company?
4. How creativity play a role to mediate in the relationship between self-esteem and
SSP in Iranian automotive company?
1.5 Purpose of Study
The first purpose of this study is to identify the effect of mediator (creativity)
on the relationship between employee motivation and SSP in Iranian's automotive
company namely Saipa Company. The second aim is to identify the role of creativity
as mediator on the relationship between self-esteem and SSP in Saipa Company.
1.6 Research Objectives
1. To examine the influence of employee motivation on SSP in Iranian automotive
company.
2. To examine the influence of self-esteem on SSP in Iranian automotive company.
3. To determine the role of creativity as mediator on the relationship between
employee motivation and SSP in Iranian automotive company.
8
4. To determine the role of creativity as mediator on the relationship between self-
esteem and SSP in Iranian automotive company.
1.7 Scope of the Study
Suggestion systems studies constitute one of the central parts of suggestion
systems research (Fairbank et al., 2003). Generally, most SSP studies have been
conducted in USA and Europe countries and few studies have been carried out in
developing countries in general and in Middle East context in particular (e.g.
Verdinejad et al., 2010; Moghimi, 2000; Abooie et al., 2010; Arif et al., 2010; Abadi
et al., 2011; Kordi et al., 2012). Thus, this study was exploring the SSP in Iran.
Based on previous studies, most researches pertaining to suggestion systems have
been conducted in the context of manufacturing companies in developed countries
(e.g. Christiaan, and Van, 2002; Fairbank et al., 2003; Buech et al., 2010; Mason,
2010; Wilson et al., 2010; Sproat, 2010; Girardelli, 2005), and a few studies have
concentrated their scope on developing countries in this industry (see: Verdinejad et
al., 2010; Abooie et al., 2010; Egtedari, 1994; Abadi et al., 2011).
Therefore, based on the literature, the independent variable is employee
motivation which has two dimensions: intrinsic motivation and extrinsic motivation.
The second independent variable consists of self-esteem which has four dimensions:
competence; significance; power and virtue. In this study, mediator is a creativity
which has three dimensions: integrated innovation; creative behavior and
organizational creativity. Dependent variable in the study is SSP which have four
dimensions: organizational trust, reward, perceived behavioral control (PBC) and
supervisory management support (SMS). It has been found that effective
implementation of a survey research leads to success in data generation. Further in
chapter three, issues that are relevant to survey tool, sample design, information
gathering, and analysis are covered.
9
According to Burns and Bush (1998), more appropriate and quality items lead
to the effectiveness of the survey. This study can be classified as a cross- sectional
study, since it measures the effect of employee motivation and self-esteem via
creativity on SSP within a specific period of time. In this study the target population
is 18,444 employees who were working in production sector. To prepare for the
distribution of the questionnaire, an initial list of respondents which include their
names and departments was obtained. In this study, using a questionnaire can
provide quantitative data for analysis. The questionnaire was measure employee
motivation, self-esteem, creativity and SSP in one of Iranian automotive company
namely Saipa Company (appendix A).
1.8 Significance of the Study
Previous research (e.g. Gardner et al., 2004; Smith, 2011; Sproat, 2010;
Verdinejad et al., 2010; Vlosky and Aguilar, 2009; Abadi et al., 2011; Grabner,
2007; Buech et al., 2010) focused on an employee motivation on suggestion systems.
Since there are a few studies in the area of suggestion systems (e.g. Christiaan and
Van, 2002; Fairbank et al., 2003; Fairbank and Williams, 2001), this study was
examined the influence of employee motivation, self-esteem and creativity on SSP. It
should be stressed that most studies (e.g. Buech et al., 2010; Mason, 2010; Wilson et
al., 2010; Sproat, 2010; Girardelli, 2005) were in developed countries while the
proposed study was in a developing country. Therefore, there is a need to investigate
the effect in that context.
Based on the literature review, the purpose of this study is to investigate the
influence of employee motivation and self-esteem by creativity for increased SSP.
This study indicates that creativity should have a positive effect on the relationship
between on employee motivation, self-esteem and SSP. Employees with a high
degree of motivation and self-esteem can achieve to high SSP. Therefore, high
motivation and self-esteem are important for employees. In this study, examining the
influence of employee motivation and self-esteem on SSP by creativity as a mediator
10
needs sufficient evidence from employees, who were working in production sector of
Saipa Company. Thus, in the study, in a quantitative examination through a cross-
sectional survey, the influence of employee motivation and self-esteem on SSP via
creativity was examined.
In this study, creativity plays a role as mediator on the relationship between
employee motivation, self-esteem and SSP. Employee creativity produces solutions
that can advance an organization incrementally or dramatically toward a desired
future state (e.g. improvements in profits, market share or competitive advantage)
(Hamel, 2000). Due to this reason, this study selected creativity as a mediator on the
relationship between employee motivation, self-esteem and SSP. This study was
focused on SSP in large companies and organizations within developing countries as
evidenced by Iran. Developed knowledge of suggestion systems will assist
organizations to establish SSP, based on resources such as, employees, to match
organizational programs.
Finally, the aim to build a model for SSP based on Theory Z is important
because this new perspective was helpful for gaining a superior assessment and
understanding of the SSP and gives answers the research questions in suggestion
systems field (e.g. Smith, 2011; Verdinejad et al., 2010; Buech et al., 2010). As an
outcome of insufficient empirical studies, the literature shows little knowledge about
the relationship between Theory Z, mediating variable (i.e. creativity) and successful
SSP. This study, through employing a theoretical perspective and by applying some
theories (i.e. Self-Determination Theory (SDT), Theory of Planned Behavior (TPB),
perceived behavioural control (PBC), and Theory Z) was attempted to examine the
influence of employee motivation and self-esteem on SSP directly and through
mediator (creativity). Furthermore, the study opened new perspectives into Theory Z
by introducing suggestion systems as being a valuable internal intangible system and
showed that the way the valuable system may help to organization, manage, and
employees in the internal and external environments.
In addition, Theory Z explains that workers need their companies‟ support,
not only this but a valuable working environment where culture, traditions, family
and social institutions are regarded equally. Such workers have discipline, self-
11
esteem employee motivation, moral obligation, creativity, and highly developed send
of order with their colleagues, which ultimately increase SSP. Generally, by
combining the results of the above discussions need to consider improvement aspects
of the automotive industries by SSP studies. Also, need to investigate SSP based on
Theory Z. There is an opportunity to investigate the role of (i.e. employee
motivation, self-esteem and creativity) in SSP.
1.9 Conceptual Definition of Key Terms
1.9.1 Suggestion Systems Practices (SSP)
In formal suggestion systems, organizations motivate employees to think
creatively and encourage them with a reward if their ideas are acknowledged by
management (Andrew, 1995). Hamel, (2000) reported that suggestion systems are
essential support for the entrepreneurial spirit in innovative firms and innovations
and competence are developed through this. As defined by Ekvall (1971), suggestion
systems are an operational process for gathering, judging and retrieving comments
from employees. Anand (2001) defined suggestion systems as the act of performing,
fulfilling something successful, and employing knowledge as identified from
individually possessing it. It is the fulfillment of a given duty measured in terms of
norms of correctness, ability, cost and speed. In another form, suggestion systems
release the success from all responsibility when he or she fulfills that (Shyma and
Shani, 2012). SSP are related to performance assessment of employees in areas of
submitting suggestions for the organization, increasing employee productivity and
organization profit.
12
1.9.2 Employee Motivation
The act or procedure of being provided with something a special behavior a
situation of being forced by something that causes a person to act (Perezgonzalez,
2008). According to David (2004), motivation is a need or interest that is employed
to stimulate behavior and conduct it towards a particular goal. Other researcher
revealed that motivation as an inducing factor for behaving in a special way and
internal force that conduct all important activities. Jones et al. (2000) describes the
motivation as physical forces that conduct individual behavior, level of his effort and
person‟s persistence against the problem. Likert (1961, 1967) define motivation as
something that manager does to accomplish objectives and creating confidence in
employees.
Employee motivation is the "psychological forces that determine the direction
of a person's behavior in an organization, a person's level of effort and a person's
level of persistence" (Jones et al., 2000). Maslow (1946) explains that human
motivation, according to his motivation theory, is enhanced when the needs at the
bottom of the hierarchy list are met sooner than the ones at the top. Merriam (1997)
revealed that motivation as an act or procedure of motivating, the situation of being
motivated, motivating for stimulating or drive. Maslow (1987) tried to represent
motivation clearer in a theoretical framework. It drives from the needs and wishes
and through some action people try to fulfill these needs. Dalton (1974) expressed
motivation as a way in which interests control the behavior of humans.
1.9.3 Self-esteem
As posited by Smith et al. (2007), self-esteem is the beliefs that a person has
about his or herself. Self-esteem includes individual‟s feelings of competence, of
being of value being and emotions like success, disappointment, honor or shame
about self (Hewitt, 2009). Self-esteem reflects a positive or negative assessment of
the self, and how to feel about it (Smith et al., 2007). Baumeister et al. (2003)
13
believe that self-esteem is a quiet realization of people about themselves. Nathaniel
(2010) expressed self-esteem as the combination of self-confidence and self-respect.
The implicit opinion of the person about his or herself and competence in face of
problems and his right to arrive contentment and respect to his desire, lead to self-
esteem. In past researches, express self-esteem as a fundamental human need or
motivation in theories. Maslow put self-esteem in his hierarchy of requirement. He
indicated self-esteem on two forms: Need to receive respect from people and to
respect to himself or inner self-esteem. Nathaniel (2010) expressed it as moral
success.
1.9.4 Creativity
Creativity, in an aspect, is the competence to take a present object and change
it into a different form to obtain a new target. Creativity means the competence in
solving problems with novel ideas. According to Mumford (2003) creativity is the
output of new and beneficial product. Some researche (e.g. Lubart et al., 2003;
Runco, 2003; Sternberg and Lubart, 1996) defined creativity as the procedure of
creating something original and worthwhile. Moreover, researchers believe that
creativity is one thing that may be produced in different forms, and not in limited
subject. Creative person lives creatively and his opinion is not like the other.
Creativity typically defines in one of two forms; as creating something new or rare in
history or something new in personal sense. Cs´ıkszentmih´alyi (1996) defined
creativity in term of scarce persons that others think they are creative. Rate of
creativity is different over historical time. Simonton (1997) analyzed the work route
to plan schemas and predictor of creative efficiency.
14
1.10 Operational Definition
1.10.1 Suggestion Systems Practices (SSP)
In this study, SSP refer to the method by which ideas and suggestions from
the employees are used to gain more rewards and benefits. SSP were measured by
adopting instrument developed by several scholars such as Cook and Wall (1980),
Spector (1985), Spector (1997), Midgley et al. (2000), and Coyle-Shapiro (2002).
The first dimension used to measure SSP is organizational trust that refers to
operationalize and measure the workers' point of view and trust. The second
dimension that is reward often offered by a management as an incentive for the
accomplishment of a task by someone cooperation in suggestion systems. The third
dimension that is perceived behavioural control (PBC) refers to people's perceptions
of their ability to perform a given behavior in SSP. The fourth dimension that is
supervisory management support (SMS) is the action of overseeing and managing
employees in the company for increase of SSP.
1.10.2 Employee Motivation
In this study, employee motivation refers to an important point that makes
employees commit to get involved in the organization to work toward similar goals.
Employee motivation was measured by adopting instrument developed by Oudejans
(2007). The first dimension used to measure employee motivation is intrinsic
motivation that refers to internal tendencies that can direct and motivate the
behaviour among employees without the presence of constraints or rewards. The
second dimension that is extrinsic motivation refers to the performance of employees
an order to attain some outcomes such as rewards and promotion of job.
15
1.10.3 Self-esteem
In this study, self-esteem refers to a term used in psychology to reflect a
person's overall evaluation or appraisal of his or her own worth. Self-esteem was
measured by adopting instrument developed by Sorensen (2012). The first dimension
used by this study to measure self-esteem is competence that employees should not
have doubts about their abilities. The second dimension that is significance is defined
by the consequences and relevance of daily occurrences; the reputation of being
significant, or having implication. The third dimension, which is power, is person
could have respect to himself. The fourth dimension that is virtue of an individual is
the integrity of the person.
1.10.4 Creativity
In this study, creativity refers to the phenomenon of new ideas cooked up by
employees with some mind values. Creativity was measured by adapting instrument
developed by Kumar et al. (1997). The first dimension used to measure creativity is
integration of innovation that refer to the process of translating an idea or integration
of invention into a good or service that creates value or for which customers of
company will pay. The second dimension, which is creative behaviour, presents the
positive relation between employees with organization and also positive relation
between employees with managers. The third dimension is organizational creativity
that comes from careful planning and forethought. This means it is not the sum of
individual creativities, but it is the result of the organizations‟ conditions.
16
1.11 Outline of the Thesis
This thesis was organized in five chapters. This chapter offered an overview
of this thesis. In this chapter the problem statement was indicated, goals were
mentioned, and questions and the importance of the research were discussed.
Conceptual definitions of key terms were also introduced. Chapter two reviews the
relevant literature about the effect of employee motivation and self-esteem via
increase creativity on SSP. It creates a logical means for the development of an
acceptable model. Chapter three specifies the research methodology. It discusses the
research design, method of data analysis, data collection tools, descriptive statistics,
population and sampling, research instrument, validity and reliability, validity of the
instrument and other things. Data analysis has been reported in chapter four. Finally,
chapter five explains; the discussion, contribution, research limitations, future
recommendations and conclusion.
195
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